Saipem has officially commenced construction activities at the Tangguh Ubadari Compression and Carbon Capture (UCC) project with the first steel-cutting ceremony at its Karimun Yard in Papua Barat province, Indonesia.
Awarded by bp Indonesia, the Tangguh UCC project includes the development of the Ubadari gas field, the implementation of carbon capture, utilisation and storage (CCUS) technology, and the construction of onshore compression facilities.
The project aims to tap into an estimated three trillion cubic feet (tcf) of additional natural gas from the Ubadari offshore field.
Saipem's role encompasses the engineering, procurement, construction, installation and commissioning of two wellhead platforms, a CO₂ reinjection platform, and roughly 90km of associated pipelines, cables and tie-ins to existing infrastructure.
This project is set to showcase the yard's ability to produce high-quality, complex engineering, procurement and construction modules while maintaining the highest standards of safety, reliability and performance.
The Tangguh CCUS initiative is poised to become Indonesia's inaugural large-scale carbon capture and storage project, with sufficient initial capacity to capture approximately 15 million tonnes of CO₂ from the Tangguh facility's emissions.
Recognised as a national strategic project by the Indonesian Government, the UCC project signifies further progress for Tangguh, building on the commencement of its third liquefied natural gas (LNG) processing unit in 2023. This has increased the overall liquefaction capacity of the facility to 11.4 million tonnes per annum.
In related news, Aker BP has chosen to extend its contract with Saipem for the semi-submersible drilling unit Scarabeo 8 until 31 December 2027.
This extension, valued at $325m (€278.12m), is a continuation of the previous contract and highlights the enduring partnership between the two entities.
The original contract for a three-year drilling campaign, awarded in March 2022, included options for two additional one-year extensions.
